Shares of billionaire Mukesh Ambani-led Reliance Industries has emerged among top favourites of mutual fund managers in October-19, even as the shares trade at near all-time high levels.
Shares of billionaire Mukesh Ambani-led Reliance Industries has emerged among top favourites of mutual fund managers in October-19, even as the shares trade at near all-time high levels. Interestingly, India’s most valued firm achieved a new landmark in the month, topping the Rs 9 lakh crore in market capitalisation on October 18th. Currently, the firm commands a market capitalisation of about Rs 9.3 lakh crore. Notably, the value of Reliance Industires has increased by Rs 3,850 crore in October with mutual funds according to a Motilal Oswal report, with the shares gaining nearly 10% in the month.
Notably, 8 out of top 20 mutual funds bought the stock in October, the report showed. In terms of value increase on month six of the top 10 stocks were from Financials: SBI (Rs 5,810 crore), Axis Bank ( Rs 3, 430 crore), ICICI Bank
(Rs 2,910 crore), Bandhan Bank (Rs 2,650 crore), ICICI Lombard (Rs 2,110 crore) and HDFC (Rs 2,000 crore), according to Motilal Oswal. The month saw a notable change in sector and stock allocation of funds with the weight of Automobiles, PSU Banks, Oil & Gas, Healthcare and Consumer increasing, while that of Technology, Capital Goods, Private Banks, NBFCs, Cement, Metals and Telecom reducing.
Notably, the weight of Technology hit a 17-month low of 8.2% (-50bp MoM, -110bp YoY). “As a result, the sector slipped to the fifth position in sector allocation of MFs (it ranked second in Aug’19),” noted Motilal Oswal in the report. Given loading up of RIL shares, Oil & Gas’ weight increased for the fourth successive month (+30bp
MoM, +170bp YoY) to hit an all-time high of 8.7%. The sector is now at the third position in sector allocation of MFs – it was at the seventh position 12 months ago, observed the report.